Trump Says He Won’t Fire Powell. His Fed Battle May Not Be Over Yet.

President Trump recently announced that he will not be firing Federal Reserve Chairman Jerome Powell, signaling a potential end to their public feud. However, this does not necessarily mean that the battle between the President and the Fed is over.

Trump has been openly critical of Powell and the Federal Reserve for raising interest rates, a move that he believes is hindering economic growth. The President has even gone as far as calling the Fed his “biggest threat” and suggesting that he has the power to remove Powell from his position.

Despite these tensions, Powell has remained steadfast in his commitment to maintaining the Fed’s independence and making decisions based on economic data rather than political pressure. This has led to speculation that Trump’s decision not to fire Powell may be a strategic move to avoid further backlash and controversy.

However, the relationship between the President and the Fed remains fragile, with Trump continuing to express his dissatisfaction with the central bank’s policies. This ongoing tension could have significant implications for the economy and financial markets, as uncertainty over the Fed’s future actions may lead to increased volatility.

In addition, Trump’s decision not to fire Powell does not necessarily mean that the Fed will change its course. The central bank has already indicated that it will continue to raise interest rates gradually in order to prevent the economy from overheating.

Ultimately, the battle between Trump and the Fed may not be over yet. While the President may have decided to temporarily set aside his differences with Powell, the underlying tensions and disagreements over monetary policy are likely to persist. This could create challenges for both the Fed and the administration as they navigate the complex economic landscape in the months ahead.